Alberta transmission operator AltaLink has awarded two five-year contracts to companies that will provide engineering, procurement, and construction (EPC) services for upcoming transmission projects.
The contracts are to deliver engineering, procurement and construction for transmission lines and substations based on project need assessments and permitting, and will apply to projects that have proposals to provide service dated after April 30.
AltaLink’s parent company, SNC-Lavalin (TSX: SNC), and Burns & McDonnell Canada were selected after a three-stage procurement process that the parties describe as “fair, open and transparent.” The auditing, tax, and advisory firm KPMG oversaw the process as a fairness advisor.
SNC-Lavalin’s contract is valued at approximately C$1.6bn (US$1.62bn), while Burns & McDonnell’s contract is valued at approximately C$700m (US$708m).
The new contracts will not cover any engineering, procurement, or construction activities related to the Western Alberta transmission line (WATL).
“The Western Alberta transmission line isn’t part of these new EPC contracts because it was already underway before these contracts were awarded,” an AltaLink spokesperson told TransmissionHub on May 3. Any work done on the WATL will be covered by the previous contracts.
SNC-Lavalin, a Montreal-based engineering firm, acquired full ownership of AltaLink in September 2011. Prior to that, it held an indirect ownership interest of approximately 77%.
Hearings for the WATL start June 11 before the Alberta Utilities Commission (AUC) and could continue as late as July 20. AltaLink has not commenced any activities regarding the WATL because the routes have not yet been approved by the AUC.